Mitsubishi : Flash Report

February 3, 2022

Mitsubishi Corporation

FINANCIAL HIGHLIGHTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2021

(Based on IFRS) (Consolidated)

1. Consolidated operating results for the nine months ended December 31, 2021

(1) Revenues and income

Note:

Figures less than one million yen are rounded.

%: change from the same period of the previous year

											Profit for the period
		Revenues		Profit before tax	Profit for the period	attributable to		Comprehensive income
											owners of the Parent
For the nine months ended	Millions of Yen		%	Millions of Yen		%	Millions of Yen		%	Millions of Yen		%	Millions of Yen	%
	December 31, 2021	12,371,138		35.8	906,560		209.1	710,193		248.6	644,768		281.2	825,909	144.9
	December 31, 2020	9,110,536		(20.3)	293,318		(46.9)	203,732		(51.8)	169,146		(54.7)	337,260	12.3
		Profit for the period	Profit for the period
		attributable to		attributable to
		owners of the Parent	owners of the Parent
		per share (basic)	per share (diluted)
For the nine months ended			Yen			Yen
	December 31, 2021			436.77		435.28
	December 31, 2020			114.54		114.27
Note:	Profit for the period attributable to owners of the Parent per share (basic) and Profit for the period attributable to owners of the Parent per share (diluted) are calculated based on Profit for the
	period attributable to owners of the Parent.
(2) Financial position
								Equity attributable to	Ratio of equity attributable to
		Total assets		Total equity	owners of the Parent to total
			owners of the Parent
								assets
As of	Millions of Yen	Millions of Yen	Millions of Yen			%
	December 31, 2021	20,513,140		7,126,431		6,170,211			30.1
	March 31, 2021	18,634,971		6,538,390		5,613,647			30.1
2. Dividends
								Cash dividend per share (Yen)
(Record date)	1Q end		2Q end			3Q end			4Q end		Annual
	Fiscal Year			－						－
	ended March 31, 2021				67.00					67.00		134.00
	Fiscal Year			－		71.00			－
	ending March 31, 2022
	Fiscal Year												71.00		142.00
ending March 31, 2022 (Forecast)
Note:	Change from the latest released dividend forecasts: No

3. Consolidated forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)

					Note:
					%: change from the previous year.
		Profit attributable to		Profit attributable to owners of
		owners of the Parent		the Parent per share
For the year ending	Millions of Yen		%	Yen
	March 31, 2022	820,000		375.2	555.46
Note:	Change from the latest released earnings forecasts: Yes

4. Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries causing changes in scope of consolidation): Yes New companies: 6
   Diamond Distributed Energy Investments, LLC
   MC URBAN DEVELOPMENT VIETNAM COMPANY LIMITED MCOP INVESTMENT PTE. LTD.
   MV2 VIETNAM REAL ESTATE TRADING JOINT STOCK COMPANY MV HOLDING ONE MEMBER LIABILITY LIMITED COMPANY
   SV REAL ESTATE INVESTMENT DEVELOPMENT BUSINESS JOINT STOCK COMPANY

Excluded companies:－

Diamond Distributed Energy Investments, LLC, MC URBAN DEVELOPMENT VIETNAM COMPANY LIMITED, MCOP INVESTMENT PTE. LTD., MV2 VIETNAM REAL ESTATE TRADING JOINT STOCK COMPANY, MV HOLDING ONE MEMBER LIABILITY LIMITED COMPANY and SV REAL ESTATE INVESTMENT DEVELOPMENT BUSINESS JOINT STOCK COMPANY became a consolidated subsidiary during the period.

(2) Changes in accounting policies and accounting estimates

-1- Changes in accounting policies required by IFRS : None

-2- Changes in accounting policies other than -1- : None

-3- Changes in accounting estimates : None

Please refer to page 12, "3. Changes in Accounting Policies and Accounting Estimates."

(3) Number of shares issued (Common stock)
-1- Number of shares issued at quarterly-end (including treasury stock)	(December 31, 2021)	1,485,723,351	(March 31, 2021)	1,485,723,351
-2- Number of treasury stock at quarterly-end	(December 31, 2021)	9,361,476	(March 31, 2021)	9,618,263
-3- Average number of shares during each of the nine months ended December 31, 2021 and	(December 31, 2021)	1,476,231,106	(December 31, 2020)	1,476,760,847
2020

Disclosure Regarding Quarterly Review Procedures

This earnings release is not subject to independent Auditor's review procedures.

Forward-looking Statements

Earnings forecasts and other forward-looking statements in this release are based on data currently available to management and certain assumptions that management believes are reasonable. The achievement of said forecasts cannot be promised. Actual results may therefore differ materially from these statements for various reasons. For cautionary notes concerning assumptions for earnings forecasts, please refer to "1. (4) Forecasts for the Year Ending March 2022" on page 5.

Contents

1. Qualitative Information …………………………………………………………………………2

1. Results of Operations ……………………………………………………………………………2
2. Financial Position ………………………………………………………………………………3
3. Cash Flows ……………………………………………………………………………………… 3
4. Forecasts for the Year Ending March 2022 …………………………………………………….5

2. Condensed Consolidated Financial Statements …………………………………………………6

1. Condensed Consolidated Statement of Financial Position ………………………………………6
2. Condensed Consolidated Statement of Income …………………………………………………8

(3)	Condensed Consolidated Statement of Comprehensive Income ………………………………9
(4)	Condensed Consolidated Statement of Changes in Equity ……………………………………10

(5) Condensed Consolidated Statement of Cash Flows ……………………………………………11

1. Changes in Accounting Policies and Accounting Estimates …………………………………12
2. Notes Concerning Going Concern Assumption ………………………………………………12

• Mitsubishi Corporation will hold an earnings conference call for the nine months ended December 2021, inviting institutional investors and analysts to join.

The conference material can be accessed live in Japanese from our website (Investor Relations section) at the following URL:

https://www.mitsubishicorp.com/jp/ja/ir/index.htmlTime and date of the earnings conference call:

From 17:45 to 18:45 on Thursday, February 3, 2022 (JST)

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1. Qualitative Information

(Profit for the period, as used hereinafter, refers to profit for the period attributable to owners of the Parent.)

(1) Results of Operations

Revenues was ¥12,371.1 billion, an increase of ¥3,260.6 billion, or 36% year over year. This was mainly due to rising prices and increased transaction volumes owing to improved market conditions.

Gross profit was ¥1,467.9 billion, an increase of ¥300.5 billion, or 26% year over year, mainly due to improved market conditions in the Australian metallurgical coal business and Salmon farming business, as well as increased sales prices in the Steel business.

Selling, general and administrative expenses remained nearly the same year over year at ¥1,043.9 billion.

Gains on investments increased ¥1.9 billion, or 6% year over year, to ¥31.7 billion, mainly due to improved fund-related earnings, despite impairment losses on the sale of an aircraft leasing company.

Impairment losses on property, plant and equipment and others remained nearly the same year over year at ¥8.6 billion.

Other income (expense)-net increased ¥17.7 billion, or 184% year over year, to an income amount of ¥27.3 billion, mainly due to fluctuations in evaluation profit on biological assets.

Finance income increased ¥58.3 billion, or 71% year over year, to ¥140.6 billion, mainly due to increased dividend income from resource-related investments.

Finance costs remained nearly the same year over year at ¥34.9 billion.

Share of profit of investments accounted for using the equity method increased ¥246.2 billion, or 342% year over year, to ¥318.2 billion, reflecting impairment losses in the previous year and improved profitability at Mitsubishi Motors Corporation as well as increased equity earnings across a wide range of businesses due to improved market conditions.

As a result, profit before tax increased ¥613.3 billion, or 209% year over year, to ¥906.6 billion.

Accordingly, profit for the period increased ¥475.7 billion, or 281% year over year, to ¥644.8 billion.

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(2) Financial Position

Total assets at December 31, 2021 was ¥20,513.1 billion, an increase of ¥1,878.1 billion, or 10%, from March 31, 2021.

Current assets was ¥8,646.0 billion, an increase of ¥1,543.1 billion, or 22%, from March 31, 2021. This was mainly due to an increase in trade and other receivables attributable to rising prices and increased transaction volumes reflecting recovery in demand.

Non-current assets was ¥11,867.2 billion, an increase of ¥335.1 billion, or 3%, from March 31, 2021. This was mainly due to an increase in investments accounted for using the equity method attributable to new or additional investments and impact of exchange rate fluctuations.

Total liabilities was ¥13,386.7 billion, an increase of ¥1,290.1 billion, or 11%, from March 31, 2021. Current liabilities was ¥6,755.0 billion, an increase of ¥1,384.8 billion, or 26%, from March 31, 2021. This was mainly due to an increase in trade and other payables attributable to rising prices and increased transaction volumes reflecting recovery in demand.

Non-current liabilities was ¥6,631.7 billion, a decrease of ¥94.7 billion, or 1%, from March 31, 2021. This was mainly due to a decrease in bonds and borrowings due to the transfer of long-term borrowings to current portion of bond and borrowings falling into within one year maturity.

Total equity was ¥7,126.4 billion, an increase of ¥588.0 billion, or 9%, from March 31, 2021.

Equity attributable to owners of the Parent was ¥6,170.2 billion, an increase of ¥556.6 billion, or 10%, from March 31, 2021. This was mainly due to an increase in retained earnings accumulated by profit for the period and exchange differences on translating foreign operations resulting from the appreciation of the U.S. dollar, despite a decrease in retained earnings as a result of the payment of dividends.

Non-controlling interests increased ¥31.5 billion, or 3%, from March 31, 2021, to ¥956.2 billion.

Net interest-bearing liabilities (excluding lease liabilities), which is gross interest-bearing liabilities minus cash and cash equivalents and time deposits, increased ¥5.2 billion, or 0%, from March 31, 2021, to ¥4,183.6 billion.

(3) Cash Flows

Cash and cash equivalents at December 31, 2021 was ¥1,425.8 billion, an increase of ¥108.0 billion from March 31, 2021.

(Operating activities)

Net cash provided by operating activities was ¥622.4 billion, mainly due to cash flows from operating transactions and dividend income, despite increases in working capital requirements and the payment of income taxes.

(Investing activities)

Net cash used in investing activities was ¥180.4 billion. The main uses of cash were payments for the purchase of property, plant and equipment, investments and loans to affiliated companies and acquisitions of businesses, which exceeded inflows from the sales of investments in affiliated companies and other investments.

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